Occupational Pension Transfers
Many of our conversations with clients start with the question ‘Should I transfer my pension?’
Pension transfers are a complex subject involving a decision making process with many variables, and one that is not to be undertaken lightly when you are looking at making choices about funding the rest of your life .
It is a legal requirement for anyone who wants to transfer an occupational pension worth more than £30,000 to seek independent financial advice, from a financial adviser who holds either G60 pensions or AF3 pension planning certifications. At Carrick Financial Management we hold the AF3 qualification.
We are not tied to any particular product or fund manager, we act on your behalf and no one else’s. Our pension’s experts can guide you through the world of pension transfers, demystifying terms such as cash equivalent transfer value (CETV), pension and income drawdown, and deferred pension.
Everyone’s circumstances are different, which is why everyone needs independent financial advice. For instance if you are in a defined benefits scheme, an offer of a large CETV can look very tempting, but you should bear in mind that once you have accepted the CETV, you cannot change your mind.
There has been a surge in defined benefit pension transfers since the pensions freedom legislation in 2015, but just because it is popular doesn’t mean it’s the right solution for your needs.
On the other hand, and in some circumstance, transferring out of a defined benefit scheme and giving up a guaranteed income for life may be exactly the right thing to do, such as in a situation where you want to leave your pension pot to a family member if you should die, you want to reduce inheritance tax liabilities, or you are paying for benefits you neither want nor need, such as a spouse’s pension when you are single.
All these aspects and many more need very careful thought and it is our job to help you understand the options and their potential consequences, so you can assess both the benefits and the risks.
Your initial meeting will always be at our expense, and we have a transparent fee structure so you know what the cost of any options would be.
We also use our lifetime cashflow forecasting software to show you how the future could look each year, and what your needs and income are likely to be at each stage of your life, so you can make the right financial choices and understand the risk involved.
Our detailed six-step business process is clearly laid out, and is designed to keep you up to date at every stage of the process.
If you are looking for professional advice on pension transfers, come and talk to one of our expert advisers.